Pls Help: OR wanting to take OH Salary in Lieu of notice

Ineedaname

Incapacity - do you mean SSP?

JustinCredibleGillespie

Sounds like Incapacity Benefit.

JCG

xx

teamjb

Ineedaname wrote: »

Incapacity - do you mean SSP?

SSP? Sorry I am not familiar with the acronyms.

Ineedaname

Incapacity Benefit can no longer be claimed, all new claims are ESA. Cannot be claimed whilst still receiving a salary anyway.

SSP is Statutory Sick Pay and is paid when someone is off sick from work. I believe it works in that an employer who pays say full salary sick pay can claim back SSP from the Government. So part of the income on the payslip will be shown as salary and part as SSP. Same when it drops to 50%. I'm a bit hazy here as it's been years since I received SSP.

Once she left her employment, with the 3 months salary in lieu she would probably still be unable to claim ESA until the end of the 3 months. However, as SSP is paid via an employer, once that employment ceases then SSP can no longer be paid either.

Unless her 'incapacity' payment is from DLA which can be paid whether in employment or not.

debt_doctor

Hi, not looking good i'm afraid.............


31.7.38 Pay in lieu of notice or compensatory notice pay
Where a bankrupt is due to receive pay in lieu of notice, or where he/she is due to receive a redundancy payment which includes an element of pay in lieu of notice, the payment in lieu of notice represents compensation paid where the employer elects not to give a statutory period of notice. This payment does not represent “wages” during the notice period. Pay in lieu of notice may be subject to tax, see HMRC website at: http://www.hmrc.gov.uk/manuals/eimanual/EIM12976.htm
A payment in lieu of notice is compensation for lack of notice, not a payment for loss of earnings, and should be claimed as an asset of the estate if paid to the bankrupt before the date of the bankruptcy order, and as after acquired property if paid after the date of the bankruptcy order.
Where an employer is insolvent the Redundancy Payments Service (RPS) will pay a compensatory notice payment (CNP) to the employee (bankrupt) instead of pay in lieu. This payment is limited by statute and subject to mitigation; the amount paid is reduced by any earnings or benefit entitlement during the statutory notice period. A CNP should be claimed as after acquired property.

Sorry.

DD

debt_doctor

Lieu of notice pay does not normally count as income for means tested benefits, it counts as capital.

She should make a claim for ESA soon as she can. (other income may well count)

DD

Ineedaname

teamjb wrote: »

as part of the terms of the contract she signed she is not able to seek employment until the end of February.

I agree DD, but doesn't the above trump that in that she would be unable to claim JSA as she is prevented from seeking employment so could not sign on to say she is available for work? So in that sense I guessed she would also not be able to claim ESA as she is still under contract.

Thinking about it further though, it's a bit odd to prevent someone seeking any form of employment, usually these are competition protection clauses preventing the individual taking on another job in the same industry.

debt_doctor

Ineedaname wrote: »

I agree DD, but doesn't the above trump that in that she would be unable to claim JSA as she is prevented from seeking employment so could not sign on to say she is available for work? So in that sense I guessed she would also not be able to claim ESA as she is still under contract.

Thinking about it further though, it's a bit odd to prevent someone seeking any form of employment, usually these are competition protection clauses preventing the individual taking on another job in the same industry.

I agree, your thoughts are correct in that such conditions are usually imposed for 'competition' reasons losing an employee to a business rival.
Such things are a civil matter and have no influence over benefit entitlement. (as I think you were saying anyway)
DD

wildheart83

I remember reading somewhere that if the individual receives a payment in lieu of notice and is prevented from seeking new employment under terms by their existing employment then money received could not be seen as or treated as an asset. I just can't find where I read it, so will have a root about and see what I can find.

Ineedaname

Thanks for clarifying DD, I thought it would affect her ability to claim benefits because presumably the contract shows a cessation date as at the end of the 3 months and not the day she finished working? Was thinking the DWP would view that as she is still employed and therefore unable to claim.

So could she start a claim for ESA now then, regardless of the end date of her contract, which would increase her income and hopefully make life a little easier for her?